MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE

Wednesday, March 7, 2018

The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee was held pursuant to public notice on Wednesday, March 7, 2018.  The published meeting time was 12:00 Noon.  The meeting was held at the Board office, located at 65 Union Avenue, Suite 1120, Memphis, TN  38103.

    The following Directors were present:
                        
        Daniel T. Reid, Chairman                James Jalenak
        Monice Hagler (by phone)             Dr. Manoj Jain              
        Ashley Davis      

    The following Directors were absent:
        
        Buckner Wellford          Nancy Willis    
                                        
    Also present were:

Staff members Martin Edwards, Jr. and Lauren Magallanes were in attendance. Charles E. Carpenter, General Counsel, Corbin I. Carpenter and Cheryl Hearn, Assistant City Attorney, were also in attendance. 

Richard Hamlet, Chasity Blackburn, Chris Lamberson and Josh Kahane, representing Bent Tree Apartments, Archie Willis, representing South City II, along with April Fair and Corinthia Fair, members of the public, were also present. 

With a quorum present, the regular meeting of the Board was called to order at 12:00 Noon by Chairman, Daniel T. Reid. 

Approval of Minutes
James Jalenak moved for approval of the Minutes for February 7, 2018.  Manoj Jain seconded and the motion passed unanimously. 


Finance Committee Report
Daniel T. Reid presented the financial results for the month ended January 31, 2018. After a complete discussion of the financials. 

Ashley Davis moved for acceptance of the Finance Committee Report for January 31, 2018, and properly seconded by Manoj Jain, the motion passed unanimously. 

 

Attorney’s Report

Charles Carpenter presented the legal report, as follows:

1.    For the Board’s information, Carpenter reported no new lawsuits or claims for the period.

2.    Carpenter reported a records request form Greg Coy at Fox 13 News, who requested various PILOT applications and Bond Inducements for years 2016, 2017 and 2018. After Carpenter and HEHF Staff compiled the requested documents, Mr. Coy was unresponsive to Carpenter’s request to collect the documents. Carpenter added that under the Open Records Act, when a requestor is unresponsive to collect the provided materials, any future record requests can be denied.

3.    Carpenter reported Mayoral approval for the three (3) Millennia TEFRA hearings held. Carpenter reminded the Board of the proposed financing structure.  

4.    Carpenter reported the MHA PILOT for South City Phase I has closed. Carpenter stated the voluntary PILOT termination for Oakshire Apartments is scheduled to close on March 16, 2018. 

5.    Carpenter reported discussions held regarding the Highland Creek PILOT and added their consideration of possibly moving forward with a new PILOT application in the coming months.  

The above concluded the legal report and there being no further concerns or questions, the legal report was completed. 

PILOT Report

Martin Edwards, Jr. detailed the Action Items to be considered, including guests for the Bent Tree PILOT Termination consideration and South City Phase II MHA PILOT Application consideration.


Action Items:

CONSIDERATION OF BENT TREE APARTMENTS PILOT TERMINATION

Richard Hamlet, President of Global Ministries Foundation (GMF), and Chasity Blackburn, GMF Regional Director, along with Chris Lamberson and Josh Kahane, legal representatives from Glankler Brown, entered the meeting.

Martin Edwards, Jr. cited the letter received from Chris Lamberson detailing site work completed, site work in progress and site work yet to be completed at Bent Tree Apartments. Edwards asked Lamberson to review outstanding items for the Board’s consideration. Lamberson reported work will be completed on the second fire damaged building by August 2018, to which Edwards stated his recommendation the work be completed prior to August. Richard Hamlet agreed and stated work will be completed by July 2018, if not sooner.  Edwards stated he would like to be notified when the Bent Tree SkyCop approval consideration is set on the City Council agenda. After further discussion on work completed and outstanding and improved crime rates, Lamberson detailed the difficulties of parking lot drainage. Edwards requested a budget and written report be provided outlining steps for parking lot water drainage resolution. Hamlet committed to solving the drainage issue and stated cooperation would likely be needed from the City, Airport Authority and adjoining property owners. Lamberson stated he would report back to Edwards within 30 days on discussions with the Airport Authority and City on a timeframe for moving forward with drainage repairs. Edwards stated his encouragement at increased occupancy. Hamlet stated the programs offered as tenant benefits have surpassed the PILOT tax savings rendered, however, management and physical deficiencies have been unacceptable; Hamlet stated he has taken steps to address these issues moving forward. Dr. Manoj Jain stated his concern for the frequency in which the Board has been monitoring the property and urged Hamlet to cure all deficiencies. Charles Carpenter stated his encouragement of Hamlet’s recent direct oversight of the property management and added Hamlet’s direct involvement with the Board moving forward would benefit everyone. Edwards stated the entrance gate needs to repaired, to which Hamlet responded positively. 

Richard Hamlet, Chasity Blackburn, Chris Lamberson and Josh Kahane left the meeting.

Members of the Board continued discussion regarding a reasonable timeline for outstanding repairs to be completed and a written plan and budget for the parking lot water drainage resolution. Charles Carpenter stated he would send a formal letter outlining the additional conditions to be completed within the extension period timeline. 

Manoj Jain moved for the approval of BENT TREE APARTMENTS NON-COMPLIANCE EXTENSION PERIOD NOT TO EXCEED SIXTY (60) DAYS. James Jalenak seconded and the motion passed unanimously.

 

CONSIDERATION OF MHA PILOT APPLICATION FOR SOUTH CITY II APARTMENTS

Monice Hagler is recused from the MHA PILOT Application consideration for South City II Apartments. 

Archie Willis, President of Community Capital, entered the meeting. 

April Fair and Corinthia Fair entered the meeting.

Willis outlined the 134 unit second phase of the 712 unit new development for the Choice Neighborhoods Initiative. Willis detailed the multiple sources of funds for the overall project. Willis reminded the Board of the various programs and improvements that will be available to the mixed income apartment community and the surrounding neighborhood. Willis stated the estimated closing timeline for Phase II is early to mid-summer 2018, with construction completion scheduled for fall 2019. Martin Edwards, Jr. added his support for the project. Charles Carpenter asked to the tenant benefit breakdown, to which Willis responded the benefits apply across all phases of the project, including reduced rents for low-income residents, and cited multiple funding sources. Carpenter reminded the Board of the overall project approval previously granted, with individual phases presented in detail for the Board’s consideration. 

Ashley Davis moved for the approval of MHA PILOT APPLICATION FOR SOUTH CITY II APARTMENTS. Manoj Jain seconded and the motion passed unanimously.


Archie Willis left the meeting.


CONSIDERATION OF PILOT TRANSFER APPLICATION FOR DOGWOOD TRACE APARTMENTS

Martin Edwards, Jr. outlined the 168 unit property and offered current pictures for the Board’s review. Edwards stated the excellent condition of the property and additional $1,000,000 in renovations planned. 

Manoj Jain moved for the approval of PILOT TRANSFER APPLICATION FOR DOGWOOD TRACE APARTMENTS. James Jalenak seconded and the motion passed unanimously.

Executive Director Report

1.    Martin Edwards, Jr. presented for consideration possibly interviewing a writer that will summarize the Board’s mission and authority, in order to provide a better understanding to those who might inquire to the Board’s functionality. Daniel Reid suggested contacting the Memphis Business Journal as a good local resource. Charles Carpenter added consideration might be given to posting the gathered information to our website. Dr. Manoj Jain suggested the tenants of properties participating in the PILOT program might also be presented with a brief summary.

2.    Edwards presented for consideration the Board’s investment in a blighted downtown property located at Fourth Street and Virginia Avenue, using the $200,000 set aside of funds, to meet the State requirement for testing the property and bring it back to standard for development. Charles Carpenter added the funds spent might be reimbursed should the property become marketable and developed. Monice Hagler stated more research is needed to explore the possibilities of what might be done with stated parcel. Edwards added the property is located next to properties that are in the PILOT program. 

New Business

No new business.

Public Comment

Referring to the Bent Tree Apartments consideration, April Fair asked to what action the Board might take at the end of the 60-day non-compliance extension period, to which Charles Carpenter stated the Board continues to hold the authority to terminate the PILOT and continues close oversight that repairs are being made in a timely manner for the benefit of the tenants. Daniel Reid stated a main focus of the Board is tenant benefits for the apartment community. Reid added the tenant benefits are closely monitored by the Board. 

It was announced that the next scheduled meeting of the Board will be held on Wednesday, April 11, 2018 @ Noon. There being no further business, the meeting was adjourned by the Chair at 1:35 p.m.